The National Bureau of Statistics said that the average annual income for farmers reached 2,936 yuan (US$355) in 2004, up 12 percent on the previous year.

Their income growth rate was 6.8 percent in real terms, the highest increase since 1997, according to the bureau's sample survey.

Income from agricultural production accounted for a great portion of the growth. In 2004, agricultural production income per rural household rose by an average of 13.3 percent to 1,746 yuan (US$211).

Wage income also contributed greatly to farmers' income growth. The yearly wage income for farmers was 998 yuan (US$121), up 8.6 percent on 2003.

Government subsidies to farmers also saw an obvious increase, and their tax burden was sharply reduced. In 2004, farmers' per capita tax burden dropped by 30 yuan (US$3.63) to 38 yuan (US$4.6), a fall of 44.3 percent.

The proportion of taxes relative to farmers' net income decreased from 2.6 percent in 2003 to 1.3 percent.

(Xinhua News Agency, China News Service February 8, 2005)